Switching things up, we’re going to take a look at this company from a pure technical standpoint and see if there are any items worth noting. The price currently sits at the highs of 1998, which is a sign that the company is back stronger than ever. Price was able to break those highs but quickly retraced below and is now testing them again. It’s difficult to say where the price wants to go, but for the near future, it wants to retest the highs of the late 90’s. If price wants to fall back down, look at $49.50 to be an area of support where in the late 90’s there was a gap down and it broke topside from there in 2016. Overall, the chart appears to be healthy and it moving well. I would wait for a more definitive action such a break to the topside with volume before enter, as this would confirm momentum to the upside.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Campbell Soup. In general, sophisticated investors focus on analyzing Campbell Soup stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Campbell Soup's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Campbell Soup's intrinsic value. In addition to deriving basic predictive indicators for Campbell Soup, many experienced traders also check how macroeconomic factors affect Campbell Soup price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Campbell Soup's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Campbell Soup. Your research has to be compared to or analyzed against Campbell Soup's peers to derive any actionable benefits. When done correctly, Campbell Soup's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Campbell Soup.
How important is Campbell Soup's Liquidity
Campbell Soup
financial leverage refers to using borrowed capital as a funding source to finance Campbell Soup ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Campbell Soup financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Campbell Soup's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Campbell Soup's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Campbell Soup's total debt and its cash.
Campbell Soup Gross Profit
Campbell Soup Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Campbell Soup previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Campbell Soup Gross Profit growth over the last 10 years. Please check Campbell Soup's
gross profit and other
fundamental indicators for more details.
Going after Campbell Financials
Risks
Being in the food sector, there are always risks but they should always be taken into account before investing. The latest 10-K filing will have a list of risks, but here are some to keep in mind. First, the company has to maintain brand image in order to retain current customers and bring in new ones. They’ve been able to do this for a while but need to maintain it to keep their place in the market. Secondly, they have ensure the food they are selling is safe and does not have a recall, as that always has negative affects on company’s. Lastly, if the overall market decreases, the stock price may decrease. But in my opinion, they are not as affected as some due to their price point in the market.
Conclusion
This company is solid and should be considered, as they seem to be sticking around for quite some time. They have a very recognizable brand and the iconic tomato soup. As with an investment, be sure to consult a professional to ensure you are getting the most value for your dollar.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Campbell Soup. Please refer to our
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